EUR/JPY Price Analysis: Euro trades higher near 162 amid bullish moving averages

EUR/JPY trades near the 162 zone following a modest advance on Wednesday
MACD prints a sell signal, while moving averages reinforce bullish momentum
Support aligns at 161.87 and 161.89, with resistance emerging near 162.40

Patricio Martín FXStreet

The EUR/JPY pair inched higher on Wednesday ahead of the Asian session, trading near the 162 area after a 0.29% daily gain. The session remained confined within a range of 161.351 to 162.279, with the pair supported by the broader bullish structure in trend indicators despite some mixed oscillator signals.

The Relative Strength Index (RSI) is holding at a neutral 53.29, suggesting stable momentum. However, the Moving Average Convergence Divergence (MACD) is currently flashing a sell signal, providing a counterpoint to the prevailing uptrend. Both the Williams Percent Range and the Awesome Oscillator are neutral, offering no strong directional bias in the short term.

From a trend perspective, the outlook remains constructive. The 20-day Simple Moving Average (SMA) at 161.871, the 100-day SMA at 160.718, and the 200-day SMA at 161.944 are all bullishly aligned. Additional support is echoed by the 10-day Exponential Moving Average (EMA) at 161.892 and the 10-day SMA at 161.677.

Daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.